KSE-100 hits historic high of 121,799 amid ADB loan boost and budget optimism

PSX rallies for second straight session as investor sentiment lifted by IMF talks, upcoming federal budget

The Pakistan Stock Exchange (PSX) closed at a historic high on Wednesday, with the benchmark KSE-100 Index surging by 1,347.99 points, or 1.12%, to finish at 121,798.86 — its highest ever closing. The rally also marked the first time the index crossed the 121,000-point level during intraday trading, touching a peak of 121,882.47 points.

The day’s gains were underpinned by continued investor optimism following the Asian Development Bank’s (ADB) recent approval of an $800 million financial assistance package for Pakistan under its Resource Mobilisation Reform Program. The package comprises a $300 million policy-based loan and a $500 million program-based guarantee, aimed at supporting macroeconomic stability and fiscal reforms.

Bullish sentiment was also reinforced by anticipation surrounding the federal budget for FY2025-26 and positive developments in Pakistan’s ongoing negotiations with the International Monetary Fund (IMF). The upcoming budget is expected to be unveiled on June 10 in a National Assembly session convened by President Asif Ali Zardari, where Finance Minister Senator Muhammad Aurangzeb will present the fiscal plan.

Throughout Wednesday’s session, the KSE-100 Index maintained a strong upward trajectory, with an intraday low of 120,896.13 points and a total volume of 292.4 million shares traded. Key contributors to the rally included heavyweight stocks in oil and gas exploration, oil marketing, banking, fertiliser, and automobile sectors — including MARI, OGDC, PPL, POL, SNGPL, SSGC, HBL, and NBP.

This performance follows Tuesday’s record close at 120,450.87 points, marking the index’s first-ever finish above the 120,000 level. Market participants cited attractive valuations and improving macroeconomic signals as key factors fuelling the back-to-back rallies.

Analysts note that continued investor confidence will likely hinge on the content of the upcoming budget and further progress in Pakistan’s engagement with the IMF.

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